AssetCo PLC on Monday said that it has bought Ocean Dial Asset Management Ltd from Avendus Capital Asset Management (UK) Ltd, following clearances from regulators.

According to the London-based asset management fund, the initial consideration is for 1.5 million shares in the company of 68.3 pence each, and £2.5 million in cash.

Up to a further 1.5 million shares may be issued, subject to adjustment, on a deferred basis until after the end of the calendar year.

As part of the final arrangements, it was also agreed that £500,000 would be brought forward, in order to form part of the deferred consideration and to replace this with the issue of shares rather than the mixtures of cash and shares originally proposed.

AssetCo expects the acquisition to be earnings enhancing. Ocean Dial had estimated net assets at completion exceeding £600,000.

‘We are delighted to have completed the acquisition of Ocean Dial on the timetable originally envisaged and to welcome India Capital Growth Fund as an important and valued client of our group,’ said Chair Martin Gilbert.

‘We are excited about the long-term potential that India offers and see opportunities to add value by bringing Ocean Dial including Gaurav and his team together with the other active equity asset management businesses we are combining under the River and Mercantile brand.’

AssetCo shares were up 0.6% at 38.24 pence each in London on Monday morning.

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